(Repeats for wider distribution)
* Traders eye Nov meeting for details
* May crimp incremental Mideast supplies to Asia
* Good demand may mean less impetus for producers to cut
By Florence Tan and Jane Chung
SINGAPORE/SEOUL, Sept 29 Asian crude oil buyers
remained cautious, eyeing details of an OPEC deal after the
oil-producers group agreed for the first time since 2008 to
reduce output in an oversupplied market.
Global oil prices held onto gains on Thursday
after soaring 6 percent in the previous session as the
Organization of the Petroleum Exporting Countries agreed on
Wednesday to reduce output to a range of 32.5-33.0 million
barrels per day.
However, how much each country will produce is to be decided
at the next formal OPEC meeting in November, when an invitation
to join cuts could also be extended to non-OPEC countries such
"We have to wait and see whether they will take real action
and how long it would last," said Kim Woo-kyung, spokeswoman at
SK Innovation, owner of South Korea's largest refiner.
The size of the proposed cut is not significantly huge, she
said, but added that the deal could support prices, increase the
value of refiners' crude inventories and margins by pushing up
oil product prices.
OPEC's new target represents an implied cut of 0.5-1.0
million bpd, although the actual cut could easily be much
smaller at 0-0.5 million bpd depending on whether Libya and
Nigeria can recover from supply disruptions, Societe Generale's
oil analyst Michael Wittner said.
The OPEC deal is unlikely to affect Middle East crude
supplies to term customers in Asia for next year, but may crimp
additional volumes that producers have been offering throughout
2016, traders said.
"They've been giving incremental volumes so maybe less for
next year," said a trader with a North Asian refiner who
declined to be named as he was not authorised to speak to media.
Still, robust oil demand in Asia has absorbed much of the
increase in OPEC production and may provide little impetus for
OPEC producers to cut output unless demand drops.
"It has historically taken a fall in oil demand to ensure
quota compliance, as in that case, production is forced lower by
a decline in refinery intake around the world. This is not the
case today with resilient demand growth," Goldman Sachs analysts
Asian refiners' crude demand has been good this year and are
expected to hold steady unless there are major changes in
refining margins or crude prices set by producers, the trader
Higher oil prices could also encourage U.S. shale producers
to increase output and fill in supply gaps left by OPEC, traders
"An amply supplied market will continue to allow these
importers to pick and choose from a broader array of suppliers,
though given current refinery configurations the dependence on
Middle Eastern crudes will continue," BMI Resarch analyst Peter
(Reporting by Florence Tan in SINGAPORE and Jane Chung in
SEOUL; Additional reporting by Keith Wallis in SINGAPORE;
Editing by Michael Perry)